When Performing Step Two of the Tax Research Process

question 70

Multiple Choice

When performing step two of the tax research process:

• A) The identification of tax issues precedes the formulation of research questions.
• B) Research questions should be as broadly stated as possible.
• C) Each tax issue is always associated with a single research question.
• D) The order in which research questions are addressed is irrelevant.

---

Definitions:

Elastic

Elastic describes a situation in economics where the quantity demanded or supplied changes significantly in response to price changes.

Price Elasticity

The extent to which changes in price affect the demand for a specific good.

Completely Inelastic

A situation where the quantity demanded or supplied does not change regardless of changes in price.

Infinitely Elastic

Describes a market situation in which the quantity demanded or supplied changes by an unlimited amount in response to any change in price, indicative of perfect competition.